saveyourassetsfirst3 |
- Silver looks like victim of intervention, von Greyerz tells King World News
- Exelon: Buying The Dip For A Leveraged Play On Rebounding Gas Prices
- Silver – Pushing On A String
- Where Are We In This Gold Bull Run?
- “The Exchange Stabilization Fund is the most powerful financial entity on the planet”
- Indias regulators said to confirm that the nations gold ETFs have their metal
- GATA Chairman Murphy to speak at Silver Summit in Spokane on Oct. 24-25
- Firsthand Update on Panama Bank Holiday
- SD Weekly Metals & Markets: A Discussion on The End Game With GATA’s Bill Murphy
- An Investing Opportunity of a Lifetime: Lessons from the Sprott Precious Metals Roundtable
- Dendreon: Looking For Spare Change In The Cushions
- Bart Chilton, RESIGN and Become a Whistleblower: Open Letter & Petition
- Win a Free Promotional Silver Round Compliments of DNA Precious Metals!
- First settlement in South Africa for ailing mining company employees
- Commodity super cycle is ‘alive and well’: McKinsey & Co.
- Latest Indian gold smuggling bust snares customs officials
- Mike Maloney: Hidden Secrets of Money [3]: Dollar Crisis to Golden Opportunity
- Latest Indian Gold Smuggling Bust Snares Customs Officials
- Italian GDP Slumps Fastest Since 1861's Unification
- Italian PM to call confidence vote as government nears collapse
- SD Weekly Metals & Markets: A Discussion on The End Game With GATA’s Bill Murphy
- 30 second guide to gold fixing
- Vitamin Shoppe: Sell-Off And 2014 Tailwinds Create Attractive Entry Point - 30% Upside
- No Comfort Yet For Dollar Bulls
- Raymond James expects Silver to go higher in Dec, Strong Buy for Fortuna Silver, First Majestic
- The Bottoming Process for Precious Metals
- Gold And Silver – Central Bank Death Dance (Part I)
- Peak Gold, easier to model than Peak Oil ? Part II
- Peak Gold, easier to model than Peak Oil ? Part II
- Anat Admati: The Failure of Financial Regulation
- Why gold will be the standout winner from the next bout of chaos in financial markets hitting $7,000-10,000
- Gold market report: Gold and silver is little changed
- The Regressive Politics of Quantitative Easing
- Gold and silver rise/Gold inventory at the GLD falls to 905.99 tonnes/SLV constant/all gold inventory at the Comex remain constant/The threat of a USA government shutdown looms large/Italian GDP slumps the fastest since 1861/Italian bond yields rise
- *Breaking: Panama Announces 5 Day Bank Holiday! Bail-in Imminent?
- As investors in India seek silver lining, metals import up 311%
- BlackRock sees CEO exits as gold miners book writedowns
- Sibanye Gold – underrated and underpriced?
- A Signal that Gold prices are too low?
- Why gold prices don't reflect fundamentals - Phillips Part 1
- The Bottoming Process for Precious Metals
- Ted Butler: Did the Treasury Dept Give JP Morgan a License to Steal?
- Latest Indian gold smuggling bust snares customs officials
- Current Situation in U.S. Dollar and non-USD Gold Price
- Alasdair MacLeod: Dollar CRISIS this Winter, CONFISCATION of Gold & Silver?
- MineWeb cites GATA in report on CFTCs decision not to act in silver
- Embry notes Bank of Englands refusal to explain gold vault discrepancy
- Jim Willie: Flash Trading Hits USTreasury Bonds
- Lars Schall interviews Jesse of Cafe Americain about gold and silver price suppression
- How the Price of Silver Could Surpass Gold in the Coming Economic Crisis
| Silver looks like victim of intervention, von Greyerz tells King World News Posted: 28 Sep 2013 08:02 PM PDT GATA |
| Exelon: Buying The Dip For A Leveraged Play On Rebounding Gas Prices Posted: 28 Sep 2013 03:40 PM PDT Exelon (EXC) is an electrical utilities firm operating in 47 states in the US and Canada and is one of the largest power generators in the country. The shares of Exelon have dropped to what I believe is a sustained subsistence level and could offer dividend investors an interesting entry point. Exelon operates in a highly regulated market that has fallen on hard times lately. The deep-cutting SA article from Jon Parepoynt summarized the key issues facing the industry players succinctly:
Thesis As natural gas prices spiked above $12/mmBtu in 2008 Exelon's output prices surged as well. Since then, the natural gas price literally collapsed during the |
| Posted: 28 Sep 2013 02:01 PM PDT Little in the way of news has transpired in the past week that could have an impact on the silver market. The main stage has been set for some time, regarding all the known factors affecting silver, to date. There is no need to review any of them, at this point. What can be noted is that the CFTC has reached the conclusion that the "alleged" manipulation by JPMorgan in the silver market, well documented and presented to the CFTC by Andrew Macguire, was much ado about nothing.. Just like lackey Eric Holder, chief law [un]enforcement official a the Dept of [no]Justice, has not been able to uncover any wrongdoing by Wall Street over the past 5 years, the CFTC ran into the same "bad luck" during its two-year investigation.
Our latest view of the market was provided in "Central Bank Death Dance, Part I." It presents a less conventional outlook on what not enough people are taking into consideration in trying to understand why silver has not rallied strongly, based on otherwise very strong demand factors. This article is more abbreviated for content, as a consequence, so we go directly to the charts, and even they have little to add as price moves in a sideways fashion. The final close for the monthly chart is Monday, but unless price makes a dramatic move up or down, September has been an "inside range" bar. It has done little to erase the stronger August rally bar, and for that reason, a slight edge goes to the bulls. What is critical now is for demand to take over and rally price higher. Sentiment aside, our expectation is for a more protracted sideways range in the months ahead. We could be wrong, but it is an "odds-on" assessment. As always, we let market activity make the final determination, as it always does.
Not much can be learned from the weekly and daily charts, so we skip to a few intra days to see if there are developing clues. The 90 minute chart shows a strong D/S, [Demand over Supply] day on high volume, 18 September. It did not go much higher, and it set up the upper bound for a TR to follow, unknown at the time. A few days later, a counter-punch by S/D, [Supply over Demand], on even higher volume. This downside effort also failed to result in any further downside, and it held the lows of the D/S bar, a plus for the buyers. Not much else can be said as price has since moved sideways for five more TDs, letting us know the buyers and sellers are in balance. What we also know is this form of balance inevitably leads to unbalance, and a directional move can be expected to follow as price moves further along the RHS of the TR, [Right Hand Side of Trading Range.]
Zooming down to a 60 minute chart does not offer a higher degree of clarity, but there are a few developments that appear more positive than otherwise. Keep in mind, this is an intra day chart, and the lasting effect is weaker than a higher time frame, weekly or daily. The chart comments give what we see. As price moves further along the RHS of a TR, the market is closer to reaching an imbalance, and that is where some low-risk entries can be made, if the set-up is clear enough on the lower time frame charts. The decline for the latter part of Friday was labored after the EUM rally early in the day. [Ease of Upward Movement]. We pay attention to the how of developing market activity, and the EUM is stronger than the labored "correction" that followed. If we had to take a stand, we would expect more upside on Monday, but that is just a non-committed "guess" because price can open lower. The market is not concerned about our "guesses," anyway. We remain lightly committed to the long side, but the sideways activity has not done much for the position. Plan accordingly and follow the market's direction.
|
| Where Are We In This Gold Bull Run? Posted: 28 Sep 2013 01:49 PM PDT In a recent presentation Ross Norman from Sharps Pixley covers all latest gold market aspects. His presentation includes the supply side and demand side elements. The presentation is embedded below and contains one or several up-to-date charts per topic. Supply side:
Demand side:
Based on the data from his presentation he comes to the following conclusion. It paints a high level picture of where we are in this gold bull run:
|
| “The Exchange Stabilization Fund is the most powerful financial entity on the planet” Posted: 28 Sep 2013 01:48 PM PDT In a new edition of their Organized Crime / Banking At Its Finest Show, Canadian financial analyst Rob Kirby and German financial journalist Lars Schall discuss this week's dismissal by the U.S. Commodity Futures Trading Commission of complaints about manipulation of the silver market. In particular, Kirby and Schall focus on a powerful entity that is rarely mentioned in financial mainstream journalism, if at all: the Exchange Stabilization Fund. For more hear The Organized Crime / Banking At Its Finest Show here. |
| Indias regulators said to confirm that the nations gold ETFs have their metal Posted: 28 Sep 2013 12:02 PM PDT GATA |
| GATA Chairman Murphy to speak at Silver Summit in Spokane on Oct. 24-25 Posted: 28 Sep 2013 12:02 PM PDT GATA |
| Firsthand Update on Panama Bank Holiday Posted: 28 Sep 2013 11:26 AM PDT
 In the wake of yesterday’s breaking news that the Bank of Panama has closed for 5 days for a Bank Holiday, we reached out to SD reader PK, an ex-pat living in Panama for a boots-on-the-ground report on the Bank Holiday. PK reports that with BancoNational shut down for a 5 day bank holiday, Panamanians [...] The post Firsthand Update on Panama Bank Holiday appeared first on Silver Doctors. |
| SD Weekly Metals & Markets: A Discussion on The End Game With GATA’s Bill Murphy Posted: 28 Sep 2013 11:15 AM PDT
 On this week’s show, GATA’s Bill Murphy joins The Doc & Eric Dubin to discuss: CFTC formally closing down investigation into silver market manipulation Trading leading up to and following the Fed’s “no taper” announcement Manipulation in a big-picture context: What’s the end game? TheNewsDoctors.com publishes petition for Bart Chilton to resign & become a [...] The post SD Weekly Metals & Markets: A Discussion on The End Game With GATA’s Bill Murphy appeared first on Silver Doctors. This posting includes an audio/video/photo media file: Download Now |
| An Investing Opportunity of a Lifetime: Lessons from the Sprott Precious Metals Roundtable Posted: 28 Sep 2013 11:00 AM PDT
 What happens when you bring together four of the top minds in the precious metals investing space to share insights from the front lines of gold, silver platinum and palladium investing? These excerpts from a Sprott Resources Roundtable featuring Gloom, Boom and Doom Report Publisher Marc Faber, Sprott Asset Management Chief Investment Strategist John Embry, [...] The post An Investing Opportunity of a Lifetime: Lessons from the Sprott Precious Metals Roundtable appeared first on Silver Doctors. |
| Dendreon: Looking For Spare Change In The Cushions Posted: 28 Sep 2013 10:30 AM PDT Earlier this month biotech Dendreon (DNDN) announced the approval in the European Union of its only commercial product Provenge. Aimed at prostate cancer, Provenge is a novel therapeutic based on Dendreon's proprietary cellular immunotherapy technology. The good news could not have come at a better time. Dendreon has had Provenge on the market in the U.S. since spring 2010. While sales have ramped impressively to $304.3 million in the most recently reported twelve months, the top-line has failed to cover costs and expenses. Indeed, for every dollar of sales generated in the last twelve months Dendreon has used $0.82 in cash. Perhaps even more troubling, the flames of cash burn have been leaping higher in recent months. In the six months ending June 2013, it took $0.99 in cash for every dollar of revenue. Investors should be questioning the sustainability of THAT business model. Where is all |
| Bart Chilton, RESIGN and Become a Whistleblower: Open Letter & Petition Posted: 28 Sep 2013 09:00 AM PDT
 TheNewsDoctors.com Exclusive: Open Letter & Petition to CFTC Commissioner Bart Chilton Petition Background (Preamble): CFTC Commissioner Bart Chilton has claimed he stands for honest markets. We, the undersigned, call upon him to read the open letter below and take the only appropriate action remaining. Mr. Chilton: Resign, become a whistleblower and take your rightful place [...] The post Bart Chilton, RESIGN and Become a Whistleblower: Open Letter & Petition appeared first on Silver Doctors. |
| Win a Free Promotional Silver Round Compliments of DNA Precious Metals! Posted: 28 Sep 2013 08:20 AM PDT
 Win 4 Ounces of Free Silver From The Doc! The Doc has selected 4 2013 Silver America Eagles 1 OZ .999 PURE Silver Rounds to be rewarded to the FOUR INDIVIDUALS who are closest to the October SILVER CLOSING PRICE! One ounce will be given to each of the closest predictions on SilverDoctors.com, SD Facebook group, Twitter Followers, and Google [...] The post Win a Free Promotional Silver Round Compliments of DNA Precious Metals! appeared first on Silver Doctors. |
| First settlement in South Africa for ailing mining company employees Posted: 28 Sep 2013 08:11 AM PDT  First settlement in South Africa for ailing mining company employees British mining conglomerate Anglo American agreed to pay a group of former gold miners in South Africa an undisclosed amount for health problems, a settlement that could open the door to thousands of similar suits against Anglo American and other mining companies. It is the first settlement reached in South Africa between a mining company and employees who say they contracted respiratory diseases from working in the mines. Lawyers representing the 23 miners said the company and other mining firms should now do "the decent thing" and consider claims submitted by thousands of other workers. Anglo American South Africa agreed to the confidential settlement in court this week without admitting liability. The settlement comes nearly 10 years after the miners from South Africa and Lesotho launched the claim. Since then eight of the 23 men have died. This story was posted on The Christian Science Monitor website yesterday...and I found it in a GATA release. |
| Commodity super cycle is ‘alive and well’: McKinsey & Co. Posted: 28 Sep 2013 08:11 AM PDT  Commodity super cycle is 'alive and well': McKinsey & Co. Recent declines in commodity prices have raised the idea that the so-called commodity supercycle is over, but not everyone believes that. Month to date futures prices, based on the most-active contracts, for gold have lost around 5%, silver’s down over 7%. Oil and natural-gas futures have lost around 4%. But “despite recent falls, commodity prices are still near their levels of early to mid-2008, just before the global financial crisis hit,” said analysts at McKinsey & Company, in a recent research note. This short commentary was posted on the marketwatch.com Internet site very early on Thursday afternoon...and it's courtesy of reader Ken Hurt. |
| Latest Indian gold smuggling bust snares customs officials Posted: 28 Sep 2013 08:11 AM PDT  Latest Indian gold smuggling bust snares customs officials The Central Bureau of Investigation in India has registered a case against two officials of the Customs Department for allegedly receiving gifts and remuneration from gold smugglers to clandestinely allow them to carry out their illegal activities. The matter first came to light on September 19, in what is being termed the biggest seizure of smuggled gold at an Indian airport. Gold bars weighing 20 kilograms were seized from two young women at the Cochin international airport, concealed in specially made jackets worn by the women. The women have since been spilling the beans, giving information about a smuggling racket involving customs officials that is rife at the Cochin airport. This story, filed from Mumbai, was one I found on the mineweb.com Internet site in the wee hours of this morning. |
| Mike Maloney: Hidden Secrets of Money [3]: Dollar Crisis to Golden Opportunity Posted: 28 Sep 2013 08:11 AM PDT  Mike Maloney: Hidden Secrets of Money [3]: Dollar Crisis to Golden Opportunity Join Mike Maloney in Singapore as he states his case for why he expects the world to have a new monetary system in this decade. Whether it is countries repatriating their gold supplies, or creating bilateral trade agreements -- these events are all deemed to be 'Golden Nails' in the coffin of the U.S. Dollar Standard. |
| Latest Indian Gold Smuggling Bust Snares Customs Officials Posted: 28 Sep 2013 08:11 AM PDT "There's no doubt that every mining executive out there knows what the true situation is." ¤ Yesterday In Gold & SilverThe gold price did precisely nothing for most of the day in Far East trading on their Friday, and the tiny rally that did develop heading into the London open got turned aside easily. The low tick of the day came at the 10:30 a.m. BST morning gold fix, andand from there it rallied back to unchanged by the noon London silver fix. Then away it went to the upside, and the price was up about twenty-three bucks by the time Comex trading began at 8:20 a.m. in New York. The usual seller of last resort put in an appearance at that point, and drove the price down to its N.Y. low by the time the equity markets opened at 9:30 a.m. EDT. The subsequent rally got cut off at the knees after the London p.m. gold "fix" was in, and except for a brief rally in the electronic market in mid-afternoon, the gold price didn't do much for the remainder of the New York trading session. Gold closed at $1,336.20 spot, up $12.40 from Thursday. Net volume wasn't overly heavy at 140,000 contracts. Silver got sold down a bit in morning trading in Hong Kong, and then traded flat in a very choppy manner until its spike low of the day, which came shortly after 10 a.m. in London. After that it was up, up, and away with hardly a pause until the Comex open. Then the not-for-profit seller[s] showed up, and the rest as they say, is history. The silver price was back below $22 spot in no time flat once again. The low in London was around $21.40 spot, and Kitco recorded the high at the Comex open as $22.25 spot, which is an intraday move of 85 cents, over 3 percent. Silver finished the New York session at $21.78 spot, up 5.5 cents from Thursday, which was 47 cents off its high. Net volume was pretty light at around 36,000 contracts. The platinum price appeared to have been held in check as well. Every little rally, no matter how tiny, just got nowhere. Palladium's price fireworks came shortly after the London p.m. gold fix at 10 a.m. in New York, and it was fairly obvious that a not-for-profit seller was lurking about to knock the price back going into the Comex close. Here are the charts, and you can decide for yourself. The dollar index closed at 80.53 in New York on Thursday afternoon, and hit its "high" of the Friday session [80.59] during the first couple of hours of trading in the Far East. It wandered lower from there up until 11 a.m. in London, and from there the down trend accelerated, hitting its low tick of 80.12 at the London p.m. gold fix. At that moment there was obviously someone standing by to catch the proverbial falling knife before the index collapsed below the 80.00 mark, the second time that has happened in the last ten days. The time before was on September 18 on the FOMC news. The index closed at 80.26, which was down 27 basis points from Thursday. The gold stocks opened on their highs and began to slide immediately, with the low coming shortly after 1 p.m. EDT. From there the stocks moved back into positive territory on the smallish gold price rally in electronic trading I spoke of earlier, but then rolled over immediately once the price got knocked back down again. The HUI finished down 0.18%. The silver stocks suffered precisely the same fate, and Nick Laird's Intraday Silver Sentiment Index closed down 0.24%. I forgot all about the fact that Monday is First Day Notice for the October delivery month, so when I checked the CME's website, I got a big surprise. There were 2,008 gold; 1,000 platinum and 3 silver contracts posted for delivery on Tuesday. In gold, the surprise short/issuer was JPMorgan Chase with 1,000 contracts out of its client account and 962 contracts from its in-house [proprietary] trading account. Not surprisingly, HSBC USA was the largest long/stopper with 1,478 contracts. Barclays and JPM [for its client account] were a distant second and third with 192 and 172 contracts respectively. There were about a dozen long/stoppers in total, but as is always the case, it's "da boyz" that are involved with the lion's share of the deliveries. The only short/issuer in platinum was Barclays out of their client account; and they, along with JPM and HSBC USA were the biggest long/stoppers, and both for their proprietary trading accounts. The link to yesterday's Issuers and Stoppers Report is here, and it's definitely worth a minute of your time. I was surprised to see that an authorized participant made a withdrawal from GLD yesterday. This time it was 115,854 troy ounces. There were no reported changes in SLV. There was a tiny sales "report" from the U.S. Mint yesterday. They sold another 1,000 one-ounce 24K gold buffaloes. And they also revised their silver eagles sales downwards by about 35,000 or so. The revised total silver eagle sales for September now stand at 2,525,000. Based on the sales figures for September so far; 13,000 ounces of gold eagles, and 10,000 one-ounce 24K gold buffaloes; the silver/gold ratio is sitting at 109 to 1. Since the last day of the reporting month falls on Monday, the mint should have one more sales report for September, and I'll report on that in my Tuesday column. There were no reported in/out movements for gold within the Comex-approved depositories on Thursday. But, like Wednesday, it was a totally different story in silver, as 800,380 troy ounces were reported received by Brink's, Inc., and 32,147 troy ounces were shipped out. The link to that action is here. The Commitment of Traders Report for positions held at the close of trading on Tuesday showed a decrease in the Commercial net short position in silver, along with a slight increase in gold's. In silver, the Commercial net short position declined by 13.2 million troy ounces, and is down to 98.1 million troy ounces. Ted Butlers says that it was mostly the small commercials [the raptors] increasing their long positions that accounted for the change. The Big 4 shorts [read JPMorgan] covered about 500 contracts, and Ted says that puts JPM's short position just under the 70 million troy ounce mark. That's amazing when you think about it. JPM is short 70 million ounces of the total Commercial net short position of 98.1 million ounces. The four biggest short holders in silver are short 182 million troy ounces between them, with JPM holding almost half of that amount all by itself. In percentage terms, Ted says that JPMorgan's short position is now down to 14.9% of the entire futures market in silver on a net basis. But as you found out on Wednesday, the CFTC says that this situation doesn't exist, even though their own report shows that to be the case, and it's the same, except worse in gold. In gold, the Commercial net short position increased by 619,000 troy ounces, which now sits at 7.15 million ounces. Ted says that the Big 4 traders on the short side increased their short position by 430,000 ounces. Ted puts JPMorgan's long position in gold at 6.4 million ounces, which represents 20.3% of the entire futures market on a net basis. Here's a chart from Nick that I haven't posted in many months. It's the "Days of World Production to Cover Short Positions" of all the commodities traded on the Comex. The only thing that has changed much is that the days of world production of palladium has now overtaken silver in the #1 position for the first time. Of the sixteen physical commodities show in this chart, the four precious metals hold four of the five top spots, andand it's been that way for years. Only recently has gold fallen below cocoa, and that's because JPMorgan is no longer short gold. They are long the gold market now. I got an e-mail last night that was rather interesting. It's an open letter and petition to the CFTC's Bart Chilton to resign and become a whistleblower. There's no question that Bart knows where all the bodies are buried, and could read us chapter and verse on what's really going on in the precious metal markets. I certainly got the impression that he wanted to tell all on this, but Gensler told him to button it. You can read all about it here, and signing it won't do any harm, as the World Gold Council, The Silver Institute and the mining companies aren't interested in helping. Now it's up to us to help ourselves. How did it come to this? Despite the fact that it's a Saturday column, I don't have all that many stories for you today, and a few of them I've been saving all week. ¤ Critical Reads Special Report: Pimco shook hands with the Fed - and made a killingThe giant fund-management firm, led by co-founder Bill Gross, started buying tens of billions of dollars in mortgage-backed securities guaranteed by federally sponsored agencies like Fannie Mae and Freddie Mac. In the third quarter of 2011 alone, Pimco's flagship Total Return Fund, the world's largest mutual fund, doubled its holdings of these securities to $80 billion, according to a Reuters review of trading and other data. While Pimco was building its hoard, the Fed, in a surprise move long before any word on quantitative easing, said it would start buying more of the same kind of debt, known in the trade as "agency MBS." The U.S. central bank would acquire as much as $30 billion of the securities a month by reinvesting proceeds from its earlier purchases. Prices rose. Pimco's mortgage plays in 2009 and 2012 - when Fed buying was heavy - handed the firm and investors in the Total Return Fund a gain of $10 billion, excluding net investment flows, according to Reuters estimates. There is no evidence of illegality or impropriety in Pimco's actions. Pimco says that it kept its employees who were helping the Fed at arm's length from those investing for its funds, and that its bond-buying bet was conceived before the Fed's program was begun. The Fed says it implemented and enforced strict controls over the trading done by the firms. But Pimco's ability to enrich its returns by following the Fed does illustrate how the Fed's easy-money policy over the past five years has produced outsized winners. As one of them, Pimco benefited enormously from the very Fed policies that it was helping to implement. Bill is an insider, and there's no way that he could have anticipated this move by the Fed unless he was in on it, despite his pleas to the contrary. This Reuters story from yesterday morning is certainly worth reading...and today's first news item is courtesy of West Virginia reader Elliot Simon.  Peter Schiff: Treasurys Are 'Junk Bonds'; Debt Ceiling Shouldn't Be Raised The nation's finances are in such tatters that Treasurys are really "junk bonds," says Peter Schiff, CEO of Euro Pacific Capital. Jeff Gundlach says taper will wait till next Fed chairGundlach also hinted that he expects the next chairman will be Janet Yellen, saying it would be unlikely for Ben Bernanke to move to begin to taper before the next chairman “he or she — probably she” is in place. Gundlach noted that dividend paying stocks have stalled in their gains lately, saying the market’s been helped lately by high-performance stocks like Tesla Motors, Netflix and Facebook. He also said the Fed’s massive purchases of government debt could have wildly unexpected consequences in the event of another banking crisis because it’s reduced “the supply of high-quality collateral.” "High-quality collateral?" Really. It's scary to hear people like that say this sort of thing. This marketwatch.com item was posted on their website on Thursday afternoon EDT...and it's courtesy of reader Ken Hurt.  Matt Taibbi: Looting the Pension FundsAll across America, Wall Street is grabbing money meant for public workers. In the final months of 2011, almost two years before the city of Detroit would shock America by declaring bankruptcy in the face of what it claimed were insurmountable pension costs, the state of Rhode Island took bold action to avert what it called its own looming pension crisis. Led by its newly elected treasurer, Gina Raimondo – an ostentatiously ambitious 42-year-old Rhodes scholar and former venture capitalist – the state declared war on public pensions, ramming through an ingenious new law slashing benefits of state employees with a speed and ferocity seldom before seen by any local government. Called the Rhode Island Retirement Security Act of 2011, her plan would later be hailed as the most comprehensive pension reform ever implemented. The rap was so convincing at first that the overwhelmed local burghers of her little petri-dish state didn't even know how to react. "She's Yale, Harvard, Oxford – she worked on Wall Street," says Paul Doughty, the current president of the Providence firefighters union. "Nobody wanted to be the first to raise his hand and admit he didn't know what the fuck she was talking about." This very disturbing 5-page essay by Matt was posted on the Rolling Stone website on Thursday, and for length and content reasons, had to wait for today's column. As you have probably already noted, the column comes with an "R" rating for "pithy prose". The first reader through the door with this, was Roy Stephens.  Doug Noland: Z1 and the Doves An economy on firm footing would be one demonstrating at least a reasonable balance within the real and financial sectors. One would hope to see sound money and productive Credit financing capital investments throughout the economy - liquidity/spending power entering the system primarily in the process of financing economic wealth creation in the real economy (as opposed to financing consumption and asset speculation).  Britain accused of trying to impede E.U. data protection lawBritain has been accused of trying to impede data protection reforms that would make it more difficult for spy agencies to get hold of material online. The European parliament is planning to vote on a new, unified law for EU member states in the next few weeks, but activists fear Britain is deliberately obstructing the path to new legislation. Speaking at an international conference on data protection in Warsaw on Thursday, the UK information commissioner, Christopher Graham, said the first draft of the proposed regulation was "too dirigiste". Britain was "not interested in regulation that is a to-do list". This article appeared on the guardian.co.uk Internet site on Friday evening BST...and my thanks go out to Roy Stephens once again.  ECB hires controversial consultancy for bank auditThe European Central Bank (ECB) on Tuesday (24 September) said it hired Oliver Wyman, a US-based financial consultancy, to help out with a thorough audit of the 130 largest banks in the eurozone. Oliver Wyman is a known name in the world of eurozone bailouts and bank "stress tests." Back in 2006, it famously said the Anglo Irish Bank was the best bank in the world. Three years later, the bank had to be nationalised and almost bankrupted the Irish state, which then needed a eurozone bailout. Last year in the Spanish bank bailout, Oliver Wyman provided eurozone decision-makers with the numbers they expected and which were politically acceptable - around €60 billion instead of a much larger gap that the banks actually had. |
| Italian GDP Slumps Fastest Since 1861's Unification Posted: 28 Sep 2013 08:11 AM PDT  Italian GDP Slumps Fastest Since 1861's Unification Italy’s Stability Program targets a 5%-6% primary budget surplus, and 3% nominal GDP growth. Both strike JPMorgan's Michael Cembalest as unrealistic in the context of post-crisis Italy. Italy ran a 6% surplus for a brief moment in the 1990’s but it didn’t last, as it was the result of a prior devaluation helping growth, some asset sales and some tax increases. Only asset sales seem feasible in Italy right now, if anything. If Cembalest's concerns are correct, Italy will remain a country with almost twice the debt/GDP ratio as the US; unbreakable interdependency of the government, the banks, and the ECB; and low GDP and employment growth. If history is any guide, he will be right as the last few years have seen the biggest collapse in Italian GDP since The Unification in 1861... You've already read all the text from this tiny Zero Hedge piece from yesterday, but the embedded graph is worth checking out as well. This news item is courtesy of U.A.E. reader Laurent-Patrick Gally. |
| Italian PM to call confidence vote as government nears collapse Posted: 28 Sep 2013 08:11 AM PDT Italian PM to call confidence vote as government nears collapse Italian Prime Minister Enrico Letta will call a confidence vote in parliament after a showdown with centre-right partners in his fragile coalition scuppered a vital package of budget measures on Friday and took his government to the brink of collapse. Letta flew back from a visit to New York with coalition unity already in tatters after a threat by centre-right lawmakers to walk out over former premier Silvio Berlusconi's battle against a conviction for tax fraud. Letta's left-right coalition has flirted with collapse ever since Italy's top court convicted former premier Berlusconi of tax fraud last month and sentenced him to four years in prison, commuted to a year of house arrest or community service. On Wednesday, PDL lawmakers said they would resign en masse if a Senate committee meeting on October 4 votes to begin proceedings to expel their leader from parliament, under legislation that bars convicted criminals. Another failed government for Italy? I think Italy has had over fifty different governments since the end of WW2, and this will add another one to the list. This news item, filed from Rome, was posted on the Reuters website just before lunch EDT yesterday...and it's the second contribution in a row from Laurent-Patrick Gally. |
| SD Weekly Metals & Markets: A Discussion on The End Game With GATA’s Bill Murphy Posted: 28 Sep 2013 07:29 AM PDT
On this week's show, GATA's Bill Murphy joins The Doc & Eric Dubin to discuss:
This posting includes an audio/video/photo media file: Download Now |
| 30 second guide to gold fixing Posted: 28 Sep 2013 07:20 AM PDT This is Money |
| Vitamin Shoppe: Sell-Off And 2014 Tailwinds Create Attractive Entry Point - 30% Upside Posted: 28 Sep 2013 06:30 AM PDT The Vitamin Shoppe (VSI) has had a very weak year (the stock is down almost 30% year to date) due to several factors:
I would argue that each of these concerns is overdone. Though Amazon is entering the market, VSI controls only 3% market share in the space and the industry will grow faster than the overall retail industry for the foreseeable future, so there is room so many competitors to succeed. GNC's Gold Card program has made no impact on VSI's business to date. Weak comps results for 2013 are more of a function of above-average growth the last several years, and will become a tailwind for the company in 2014, as the company should beat a low bar on estimated revenues. Most importantly, the company |
| No Comfort Yet For Dollar Bulls Posted: 28 Sep 2013 05:05 AM PDT We had anticipated that the market's disappointment with the Federal Reserve would initially weigh on the dollar, but we had thought the focus would shift back toward Europe, especially after the German election. We anticipated that, by default, this would be more supportive of the dollar against the major currency currencies after it had trended lower since early-to-mid-July. However, two things have happened that have kept investors' attention on the US. First, the dysfunctional US Congress is once again threatening to close down the US government and possibly force a default. Second, it appears that an increasing number of market participants are moving toward our view that tapering is unlikely this year. We continue to expect a deterioration in the political and economic climate in the euro area, and for this lend support to the dollar. Yet, we were early in our timing and the technical condition warns that further |
| Raymond James expects Silver to go higher in Dec, Strong Buy for Fortuna Silver, First Majestic Posted: 28 Sep 2013 04:56 AM PDT Raymond James foresees silver trading in a ~$6/oz band defined by the metal̢۪s recent price low (~$18.50/oz in late June) and recent price high (~$24.65/oz in late August). We view seasonal trade as being the main driver in keeping silver in the upper half of this band through to mid-December. |
| The Bottoming Process for Precious Metals Posted: 28 Sep 2013 04:04 AM PDT The Daily Gold |
| Gold And Silver – Central Bank Death Dance (Part I) Posted: 28 Sep 2013 01:43 AM PDT If "they" can get you to ask the wrong questions[s], "they" do not have to worry about giving the right answer[s]. The question most have been asking is, why aren't the prices of gold and silver reflecting the unprecedented huge demand and the almost depleted holdings of the exchanges and central banks? Article after article has been retelling the stories of long lines to buy silver and gold, all over the world, Russia and China buying everything available for sale from the gutless Western central bankers, failure to deliver physical gold by banks to customers, failure to deliver contract gold on the COMEX, rolling it forward and/or settling for cash for those who take it. Each of these factors have been posed in the form of a question to ask why prices have not reached new highs, and substantially higher PM highs. These are the wrong questions which is why no one has offered the "right" answer as it pertains to price. We have alluded to other issues in salvos against the central banks and New World Order, [NWO], on several occasions. The NWO, through the Bank for International Settlements, [BIS], its central banks own the United States since 1933, when this country was forced into bankruptcy and Socialist Roosevelt shut down the banking system to give time for the Federal Reserve to take total control. The de facto corporate federal government has been taking it marching orders from bankers since about 1861.
Cognitive dissonance has almost all of the American population, and the rest of the world believing FRNs are "dollars." Those unaware are unaware of being unaware, and as a consequence, the unaware are not asking the right question[s]. When presented with the truth, people do not believe it. Instead, they believe in the lies fed to them so that the real truth sounds like a lie. The NWO has shredded the organic Constitution, created by our forefathers, and replaced it with a federal constitution that is very similar to but drastically different from the original. The NWO has also driven out capitalism and replaced it with corporate fascism and central planning, for over the past century, but few have noticed or even care to know.
How do people in this country measure their wealth? By the worthless fiat FRN. Almost all measure their worth by debt. What is the antithesis of debt? Gold and silver, those metals which have a proven history of an intrinsic store of value. Prior to the Federal Reserve, this country issued United States Treasury Notes, backed by gold and silver. Every Note could be exchanged for its face value into gold or silver, at any time. Into what can anyone exchange a Federal Reserve Note? For another one, only. The value of an original FRN issued in 1913 is worth about 2 cents, today, maybe less, not that it matters. The value of an ounce of gold in 1913 was $18.32. Even at today's price, suppressed as is has been, that same ounce of gold is worth $1,340. The price of silver in 1913 was $1.29 vs $22 today. Here is at least one right question you should be asking: Which would you rather own, a fiat piece of paper, or an ounce of gold or silver?
If the prices of gold and silver were allowed to reflect their true worth, it would totally undermine the existence of the "dollar" and topple central bankers and governments. Those bankers in control are not going to go down, [which they inevitably will], without a fight, and they will destroy existing western currencies in the process. If the paper "dollar" is how you measure your worth, you have been warned. We have been advocating buying and holding physical gold and silver, regardless of price for reasons such as the above. Anyone gambling on timing of the availability for buying physical gold and silver is playing a risky game and ignoring factual history supportive of owning either or both. Do so at your own peril. We have heard from esteemed sources that the COMEX/LBMA exchange pricing is a joke. That may be true, but it continues to work, and it may continue to work for longer than anyone expects. Some are measuring central banking gold/silver failure in months. It may last for years, still. No one knows the future, and those who have professed gold and silver reaching stratospheric heights have been wrong, for the most part, over the past few years. At this point, we turn to those "silly" charts because we know of no better substitute no matter how corrupt they may be. They are accurately telling everyone what they can expect to pay for the purchase of physical gold and silver. What we do not see in any of the charts are signs of panic from the bears. That can change next month, but we are dealing with the present. Until there are definite signs of change, we reference the charts because of no viable alternative. Not a lot can be said about the weekly. The trend is down. It has weakened a little but has not changed. The past three weeks were an attempt to get the market lower that failed, at least for now. Last week's small range rally bar was relatively weak, but price managed to close on the higher end of the bar, a plus.
The same information is seen in greater detail on the daily. The effort to push price lower from six weeks ago was stopped, but the rally effort since has been somewhat weak. Gold needs to rally away from this little support area, or it could be challenged, again.
Price continues to hold above the gap higher rally bar, 7 weeks ago. It continues to be an important turning point for silver. The trend is down, but there has been no concerted effort to push it lower, as was seen in the Spring.
There is a slight positive aspect to the clustering of closes, but with the trend still down, the onus is on buyers to show control by moving price higher, soon. The futures have been difficult to trade, but buying physical gold and silver is a no-brainer.
|
| Peak Gold, easier to model than Peak Oil ? Part II Posted: 28 Sep 2013 01:30 AM PDT The Oil Drum |
| Peak Gold, easier to model than Peak Oil ? Part II Posted: 28 Sep 2013 01:30 AM PDT The Oil Drum |
| Anat Admati: The Failure of Financial Regulation Posted: 28 Sep 2013 12:55 AM PDT Anat Admati is the George G.C. Parker Professor of Finance and Economics at the Graduate School of Business, Stanford University. Here she is interviewed by Marshall Auerback, the Institute for New Economic Thinking’s Director of Institutional Parternships. Lambert here: Since it’s the weekend and nobody’s watching, I’ll dip my toe in the waters of finance; maybe at some future point I’ll actually wade into the shallow end of the pool! This interview contains an interesting, nuts and bolts discussion of the Cyprus and London Whale debacles, and it’s worth a listen to see how a finance professional recapitulates them; I found it interesting that Admati uses the phrase “political economy” unapologetically. Both Auerback and Admati agree that we seem not to learn from past crises. The interview concludes:
I would ask “work for whom?” since assuredly our current arrangements work for some, but never mind that. Because Jeebus, since I’m new to this stuff, can it really be true that the idea pf environments marked by “a combination of self-interest and confusion” isn’t already a basic working assumption in the discipline of economics? (Especially since we see, in accounting control fraud, which played such a role in creating the great financial crisis, that actors create confusion deliberately, out of self-interest.) Isn’t the real world just like that? Anyhow, the material Admati supplies along with the interview is really interesting, and much more tool focused than the interview. I fixed on the phrase “flawed claims” — I’m a magpie for glittering phrases — because I thought Admati meant financial claims, like debts, which, being false, would have to be unravelled sooner or later, taking down the whole system, destruction, collapse, Götterdämmerung, SHTF, etc. But no! Admati means claims as a rhetorician would understand the word: An assertion that something is or should be true, like “It is the case that Jamie Dimon is a lying weasel, albeit charismatic in his own way,” or “Poor people must be punished.” And that led me to this paper, “The Parade of the Bankers’ New Clothes Continues: 23 Flawed Claims Debunked,” by Admati and Martin F. Hellwig of the Max Planck Institute for Research on Collective Goods (!). The authors seem to have aggregated false claims made as feedback to their book, and reinserted, as it were, the system’s outputs back into the system itself, in the form of a paper. Here’s the PDF of the paper, and here are the 23 claims. I know 23 is rather a lot, but you’ve probably heard a shouting head on the TV emit all of them, at one time or another.
One and all false! I’m a sucker for numbered lists — “23 Weird Claims Banksters Make” — because they’re easy to refer to, and to chain together. We can claim, for example, that if Claim 18 is false, as Admati claims it is, then when the next — inevitable! — financial crisis comes along, we are so hosed. (For some definition of “we,” of course; the lesson of the 2008 crash and the subsequent and continuing depression, is that “this is working out well for them”, where “them” is some “us” unlikely to be us.) Let’s look at one debunking in detail: Claim 22. (I picked this one because it sounds like the sort of claim that TPP advocates would make:
The claim is interesting, because it’s a policy claim that “must” be true. Admati’s responses are No, things don’t have to be this way. But who is deciding the “must”? Let me highlight one sentence in her debunking.
Well, if you’re drafting the TPP, or supporting it, that’s exactly what “we” “would” allow. Friends of the Earth:
If the international tribunals are biased toward investors, then indeed “we” will have had exactly the kind of race to the bottom that Admati so justly decries and, history being written by the winners, “should” have had it, too. Because the free market! So, and most definitely FWIW, I think Admati’s done the world a great service by aggregating the “flawed” — I keep writing “false” — claims of banksters and their apologists and shills. It’s great to have all the lies gathered in one place and debunked. However — and here is where the obvious riposte is “Read my book!” OK! OK! — when speaking of political economy, conflict goes down to the bone, down to very simple, one syllable words like “we,” “work,” “must,” and “should,” which turn out to be highly contested. Because TINA? |
| Posted: 27 Sep 2013 11:02 PM PDT Chaos theory is a very different game from conventional economics or investment analysis. The latter assumes continuity and stablity in markets that make projections from the past and cash flow calculations meaningful. What do we mean by chaos? We mean the Fed loses control of interest rates and they jump by 50 per cent in two months. That’s just happened. We mean the S&P 500 does the Elliott Wave theory correction and drops by 50 per cent. Comng next? We mean interest rates rocket all over the world and there is a massive deflation is followed by a hyperinflation. Cash not king You can’t expect to pick the one winning stock when everything is in such a state of flux. You’re even going to get screwed by holding cash. Money can become worthless as it did in Zimababwe so recently. There will be too much of it around when everything is sold off. Now why should we anticipate this sort of disaster? Have the Fed and global central banks not been correcting the mistakes of 2008 for the past five years? Well that is of course the problem. They have simply solved a debt crisis by creating yet more and more debt. Next week the US Government shutdown looms due to overspending and another crisis over the debt ceiling is next on the agenda. All this money printing over the past five years has made the global economy more unstable and liable to sudden shocks and violent reversals. Many people feel this instinctively and have pulled back from investment and spending, and that of course has only made things worse. What you want to buy is an insurance policy against this coming catastrophe and preferably one that does not have a third party between you and your money. Gold is the ultimate money in times of chaos. It has been in civil wars, major financial collapses and World Wars too. $7,000-10,000 gold There is no point in running over the argument about the role of gold in an upcoming global economic reset of currencies but we have reviewed the work of Jim Rickards (click here) and there will be a much longer article explaining his logic in the next issue of the ArabianMoney investment newsletter (subscribe here). His conclusion is that gold will hit $7,000-10,000 an ounce, depending on how the crisis evolves. Investment experts, fund managers and professional economists just do not seem to get this argument. You might say that is why they completely missed the 2008 debacle coming. We did not, you can find the articles in our archives. So here we go again. But gold is in a different position to 2008. It’s already had its price correction and is currently cheap. That just leaves more room for the price to advance as financial markets enter a period of chaos after the initial down pull of the whole financial system going down like the Titanic. |
| Gold market report: Gold and silver is little changed Posted: 27 Sep 2013 11:00 PM PDT Finance and Eco. |
| The Regressive Politics of Quantitative Easing Posted: 27 Sep 2013 07:48 PM PDT From Unconventional Economist, who has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs. Cross posted from MacroBusiness, originally published at The Conversation. When financial markets stood on the verge of collapse in the summer of 2008, two of the world's most important central banks, the US Federal Reserve and the Bank of England, began considering unorthodox policy measures. They turned to Quantitative Easing, or QE: injecting money into the economy by purchasing assets from the private sector, in the hope of boosting spending and staving off the threat of deflation. These were desperate measures for desperate times. With signs of a fragile economic recovery gathering enough momentum to reassure policymakers in the US, the policy was expected to be wound down. But in a move that caught commentators off guard, the Fed instead committed to continue with its existing level of asset purchases. For the foreseeable future, at least, QE is here to stay. What began as a short-term crisis measure has now become a key component of Anglo-American growth strategies. It's important, then, to take stock of QE and the central role it has played within the Anglo-American response to the financial crisis. The way the Fed led the policy response to the financial crisis is important in two ways. First, it reflects the extent to which the Anglo-American economies have become financialised: credit-debt relations are pervasive throughout all facets of contemporary economic activity and there has been a deepening, extension and deregulation of financial markets commensurate with this development. In that context, with the increased competitiveness, scale and global integration of financial markets intensifying the risk of financial instability, the crisis management capacities of central banks have become increasingly important. Second, central bank leadership of the policy response also reflects a key feature of neoliberal political economy in practice. Despite all the rhetoric of free markets, competition and deregulation that has been the mainstay of neoliberalism, there is a central contradiction at its heart: neoliberalism has been extremely reliant upon the active interventions of central banks within supposedly "free" markets. The crisis has been warehoused on the expanding balance sheets of central banks, demonstrating just how much scope for policy manoeuvre there is when governing elites want it. Government debt and private assets, including toxic mortgage-backed securities, have been indefinitely transferred onto central bank accounts. This strategy highlights the role of arbitrary accounting processes, shaped by state institutions, at the heart of supposedly "free market" economies. Given this room for manoeuvre, there is no doubt that a much more expansionary fiscal policy and a progressive taxation system could have been implemented in response to the crisis, but that response is foreclosed by the ideological confines of the prevailing neoliberal orthodoxy. Instead, we have monetary expansion and fiscal austerity. Incubated within the crisis conditions of the 1970s, the neoliberal revolution in the West was birthed during the 1980s with the landmark electoral victories of Margaret Thatcher and Ronald Reagan. The early years of their tenure were marked by proactive central bank policies, fighting inflation through high interest rate regimes that were justified with monetarist dogma. Those policies had mixed results, but, crucially, they signified the strong emphasis upon monetary policy within the new paradigm, which now prioritised price stability, rather than the traditional post-war commitment to full employment. By 2008, the challenge faced was markedly different. Now it was deflation and a shortage of liquidity, not inflation, which threatened the functioning of financial markets. Yet, in common with the inflationary crisis of the early 1980s, monetary policy has again been emphasised as the proactive component of the policy response. The common element in both crises is this combination of monetary activism, through extreme tightening (in the 1980s) or loosening (from 2008) of the credit flow, plus of course fiscal austerity. What have the effects of this combination been? In the 1980s, the high interest rate regimes aggravated unemployment, boosted bank profits and accelerated the growth of income inequality. When the Anglo-American economies did return to growth they were markedly different than they had been before. In the present period, we've witnessed a similar form of wealth redistribution. Recent estimates by Berkeley professor Emmanuel Saez, an influential scholar of income inequality, suggest that 95% of wealth gains since 2009 have accrued to the top 1% of the US income distribution pattern. In Britain the experience has been very similar, with the Bank of England's own report in 2012 suggesting that QE had benefited Britain's richest 5% the most. These two major crises – the first inflationary and the second deflationary – have been the defining moments of the neoliberal period within the Anglo-American sphere and it's remarkable that they have led to a similar pattern of policy response. They have also both produced "regressively redistributive recoveries": by this I mean that where and when growth has returned the benefits have been highly skewed towards the upper percentiles of wealth holders. That was the case in the 1980s, when the acceleration of income inequality really got underway. And it has been the case, once again, in the wake of the 2008 crisis. Today's "recovery" has largely been confined to rising stock prices and asset values. Meanwhile, average incomes have continued to stagnate or decline and income inequality has intensified. Quantitative easing has been central to this regressively redistributive recovery, boosting balance sheets and stock market values without providing a commensurate recovery throughout the economy as a whole. These measures have disproportionately benefited those who already own financial assets on a large scale. Quantitative easing is thus exposed. It's not merely a technical remedy to a malfunctioning financial system, but rather a deeply political policy programme. There are winners and losers just as with any economic policy that affects the overall distribution of wealth and resources within society. The conventional fixation with GDP obscures these dimensions of the recovery and ignores key questions about the distribution of wealth within society. As the statistics about the uneven benefits of economic activity since the final crisis show, it's important to remember that recessionary periods are not simply dead-spaces: even while the pie may be shrinking, the slices held by different groups within society can expand and contract in a very uneven manner with serious social consequences. There is no small irony in the fact that the banks, whose indiscretions lay at the heart of the original financial crisis, have been the major winners during the recession. If we keep on following these same neoliberal policy paths we will only end up with ever more deeply divided and highly unequal societies. These are not firm foundations for healthy democracies. Article by Jeremy Green, Research Fellow, Sheffield Political Economy Research Institute (SPERI) at University of Sheffield |
| Posted: 27 Sep 2013 07:34 PM PDT |
| *Breaking: Panama Announces 5 Day Bank Holiday! Bail-in Imminent? Posted: 27 Sep 2013 07:00 PM PDT
*Updated 4pm EST with notice to customers from National Bank of Panama’s website This morning the National Bank of Panama announced that it was suspending all services until Tuesday the 1st of October. The National Bank of Panama claims that the reason for the 5 day bank holiday is to upgrade systems. The Clave (Debit [...] The post *Breaking: Panama Announces 5 Day Bank Holiday! Bail-in Imminent? appeared first on Silver Doctors. |
| As investors in India seek silver lining, metals import up 311% Posted: 27 Sep 2013 07:00 PM PDT Charleston Voice |
| BlackRock sees CEO exits as gold miners book writedowns Posted: 27 Sep 2013 03:18 PM PDT Producers from Toronto to Melbourne are pledging to curb spending and halt expansions after taking $26 billion in writedowns since July. |
| Sibanye Gold – underrated and underpriced? Posted: 27 Sep 2013 03:07 PM PDT Gold Fields spin-off, Sibanye Gold, offers huge high grade resources, but at a low investment rating due to South Africa's poor global perception, thus enabling a high dividend yield. |
| A Signal that Gold prices are too low? Posted: 27 Sep 2013 01:32 PM PDT Low gold prices are starting to cure low gold prices it appears. The first signs of meaningful production cuts for the industry emerged this week, in Ghana. Ben Aryee, head of the state Minerals Commission, told reporters that Ghana’s gold output may drop as much as 18% this year. Aryee reported that the nation’s production in the second quarter fell 6.4%, to 1.021 million ounces. He singled out the low gold price as the direct cause of falling output, saying that gold production “will definitely decline” as “companies are scaling down operations”. Such sweeping cuts from a top-ten producing nation are a sign of the times. As the chart below shows, the latest numbers from major gold producers like Barrick, Newmont and Goldcorp suggest production costs including sustaining capital are averaging close to $1,150 per ounce. Higher-cost producers are making little money at the current $1,300 gold price.
This should put a floor on gold in the medium- to long-term. Any downward price movement from here would trigger more mine closures like the ones we’re seeing in higher-cost Africa (you can see above that sustaining costs for producers like African Barrick are over $1,500 per ounce). Tightness in supply would result. Of course, in the short-term anything is possible in commodities markets. But the indicators are telling us that moves lower shouldn’t last long–and thus might constitute good buying opportunities for bullion and producing stocks. Here’s to the price being right, Dave Forest dforest@piercepoints.com / @piercepoints / Facebook |
| Why gold prices don't reflect fundamentals - Phillips Part 1 Posted: 27 Sep 2013 12:46 PM PDT Gold Markets are not inefficient, unreflective of fundamentals & understate the metal's market value, writes Julian Phillips |
| The Bottoming Process for Precious Metals Posted: 27 Sep 2013 12:45 PM PDT In our last editorial we pointed out how the gold stocks had veered off the recovery course. They fell well below the recovery template and fell below their 50-day moving averages. Furthermore, the positive "non-taper" news turned out to be the mother of all bull traps for traders. The market soared on presumably an epic amount of short covering. Yet that only served to be a selling opportunity for traders. That sequence of events only strengthened our view that the sector continues to be headed for a retest which could serve as the mother of all buying opportunities. The weekly chart of GDXJ and GDX shows these markets sitting between strong support and strong resistance. At current prices, GDX has 12% downside to its daily closing low while GDXJ has 21% downside to its daily closing low. The silver stocks (SIL is not shown) also have 21% downside to their daily closing low. That is probably too much downside for a new low but it doesn't rule out a retest. The weekly charts for Gold and Silver show a similar picture. Gold rallied nearly $220 on a daily closing basis. However, it failed at $1400 which is now clear resistance. Similarly, Silver rallied from $18 to nearly $25. There is quite a bit of resistance at $24. We think its unlikely Gold and Silver break past $1400 and $25 anytime soon. We'd first anticipate a retest of the summer lows or at best weeks and weeks of back and forth of action. The good news for precious metals bulls is this market remains in a bottoming process which should produce a turning point that is on par with those seen in 2000 and 2008. The bad news is we are already five months into this bottoming process and it can continue for several more months. We don't see widespread news in the sector but it is possible that GDX makes a new low but not GDXJ. It's possible Gold makes a new low but not Silver. Major divergences are common at major bottoms. The gold and silver stocks have been in a two and a half year bear market and have shed anywhere from 65% to 78%. Silver has been in a two and a half year bear market and at one point shed nearly 65%. Gold has been in a two-year bear market and has shed 36%. Huge cyclical rebounds aren't an immediate reaction to the scope of these types of declines. These markets are telling us that the worst is just about over with yet more time is needed for a base that will launch the next phase of this secular bull market. If you don't believe the next phase is worth waiting for then consider the following. Following these major bottoms the mining stocks have rallied on average 60%-70% within five months. In the two-month rally this summer, SIL rebounded 55% while GDXJ rebounded 63% (both on a daily closing basis). Once this bottoming process moves to its final stages, many stocks will be primed for spectacular rebounds that could occur in weeks and months. Readers are advised to watch closely and spot the companies which show the most strength during this retest. If you'd be interested in our analysis on the companies poised to lead this new bull market, we invite you to learn more about our service.
Jordan Roy-Byrne, CMT |
| Ted Butler: Did the Treasury Dept Give JP Morgan a License to Steal? Posted: 27 Sep 2013 12:30 PM PDT
 In this MUST WATCH interview with Sprott’s Ask the Expert, silver analyst Ted Butler discusses how JP Morgan inherited Bear Stearns massive short gold and silver positions in early 2008 at the request of the US Treasury Department, and makes the case that requesting JP Morgan inherit Bear Stearns’ positions should not have been a [...] The post Ted Butler: Did the Treasury Dept Give JP Morgan a License to Steal? appeared first on Silver Doctors. |
| Latest Indian gold smuggling bust snares customs officials Posted: 27 Sep 2013 12:24 PM PDT The recent haul has turned the spotlight once more on the massive rise in the amount of gold being smuggled into the country |
| Current Situation in U.S. Dollar and non-USD Gold Price Posted: 27 Sep 2013 12:07 PM PDT SunshineProfits |
| Alasdair MacLeod: Dollar CRISIS this Winter, CONFISCATION of Gold & Silver? Posted: 27 Sep 2013 12:05 PM PDT
 For most of his 40 years in the finance industry, Alasdair MacLeod has been de-mystifying macro-economic events for his investing clients. The accumulation of this experience has convinced him that unsound monetary policies are the most destructive weapon governments use against the common man. Alasdair believes one of the major consequences of unsound monetary policies [...] The post Alasdair MacLeod: Dollar CRISIS this Winter, CONFISCATION of Gold & Silver? appeared first on Silver Doctors. |
| MineWeb cites GATA in report on CFTCs decision not to act in silver Posted: 27 Sep 2013 12:02 PM PDT GATA |
| Embry notes Bank of Englands refusal to explain gold vault discrepancy Posted: 27 Sep 2013 12:02 PM PDT GATA |
| Jim Willie: Flash Trading Hits USTreasury Bonds Posted: 27 Sep 2013 12:01 PM PDT
 The USTreasury Bond market breakdown is in progress, all part of the general USDollar global rejection that is taking the world by storm. The USFed, the USGovt, and the Big US Banks urgently needed to stop the move in the 10-year bond yield (aka TNX). They needed to prevent a move above 3.0% on the [...] The post Jim Willie: Flash Trading Hits USTreasury Bonds appeared first on Silver Doctors. |
| Lars Schall interviews Jesse of Cafe Americain about gold and silver price suppression Posted: 27 Sep 2013 11:02 AM PDT GATA |
| How the Price of Silver Could Surpass Gold in the Coming Economic Crisis Posted: 27 Sep 2013 10:30 AM PDT
 Before the US stopped minting silver coins, the worldwide supply of above-ground silver was approximately nine (9) billion ounces, thanks primarily to the Comstock Lode. Since that time, silver has been consumed at a phenomenal rate (as you have covered exhaustively in countless articles) until today roughly one (1) billion ounces remain above ground. In [...] The post How the Price of Silver Could Surpass Gold in the Coming Economic Crisis appeared first on Silver Doctors. |
| You are subscribed to email updates from Gold World News Flash 2 To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
No comments:
Post a Comment